Axe falls a ledford loses
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• The long-term future of Bedford's truck business has been clouded in new doubts following an 18% leap in its losses last year and a new call for redundancies.
General Motors' dreams of becoming a new force in the European truck market, already dealt a series of blows by the spurning of offers for marriage with MAN, Enasa and Leyland, looked even less near to fruition this week as it called for 1,700 voluntary redundancies at its Luton and Dunstable plants.
It is thought to be discussing some form of co-operation with Renault Vehicules Industriels, also a heavy (but im proving) loss maker whicl wants a partner and which the former Dodge factory Dunstable.
While Bedford's revival the light van market help boost total sales last year f 1984's 47,958 to 61,646, overall loss climbed from 262.4 million to 273 million year.
By contrast, Leyland, r which Bedford would hay( been merged and effectivâ– run down had the discuss earlier this year been successful, cut its loss fr 253 million to 241 million To help implement the c which account for 23% of current workforce, Bedfor reinstate its early retireit and voluntary separation gamine.
his was previously exted to have been put into ct last year, although it shelved while the abortalks between GM and Leyland were going on.
According to Bedford's recently-appointed general manager, Paul Tosch: "Several significant factors combined to frustrate the expected turnaround in Bedford's performance."
Despite its improved light CV sales, and improved export business (up to 11,884 vehicles last year) Tosch says that the company's improvements "were offset by a decline in the most profitable sales of heavy vans and trucks. This caused an imbalance in the sales mix."
Bedford has also had to face increasing competition in the UK domestic market and in particular Tosch says the company has encountered "very competitive product pricing".
To counter this activity Tosch says that Bedford "has maintained an extensive dealer support operation. But overall, market conditions have made it difficult to recover costs".
Bedford wants to cut 520 jobs from Dunstable, 660 at the Luton van plant, 340 from the Luton press shop and a further 180 from support and administrative staff.
No formal time-scale has yet been announced although the company is looking to achieve the job cuts before the end of the year.